Oporto in China: why they are seeking growth offshore
Oporto are about to open their third store in China, QSR Media had a 1 on 1 interview with their CEO, Jeff Fisher about their plans, outlook and why they are looking to OS markets for growth. We put the following questions to Jeff:
1/. Tell us about your Chinese partners and why you chose them?
Our Chinese partners are excellent. They have extensive business interests in China and Australia and were very aware of our brand and offer as they have operations here in Sydney. We began discussions with them in 2008 and soon realised that they possessed all the necessary attributes of an excellent Master Franchise Partner; attributes like strong business credentials, excellent knowledge of the Chinese market, access to the required resources both financial and operational, involvement within the industry (in their case they are involved in the processing and supply of fresh chicken). Most importantly, they have both passion for the Oporto brand and product offering and the long term commitment to establish and grow the business in a focused and sustainable manner understanding the need for excellence in operational execution.
2/. How do you market your stores in China?
Whilst there are a number of ways to locally market the opening of a new restaurant in any foreign market which includes localised street signage, flyer hand outs and engaging with nearby businesses and consumers, the fundamental requirement in any new market is to ensure the stores are located in high traffic locations – effectively ensure you go to the people rather than expecting the people to come to you. Executed well the store itself becomes your most effective marketing tool when exposing a new brand to a new market, and ensuring the store is located in a key traffic area nearby other key competitors drives trial and allows local marketing initiatives such as flyers and outdoor signage to work hand in hand with the store presence and signage zones to attract the maximum number of customers to your counter.
3/. Tell us about the changes to your menu you have made to appeal to the local market?
Whilst the menu in China is largely the same as in Australia we have made adjustments and additions to ensure it remains relevant to the local consumer. Having said this, our products and flavour profiles have been readily embraced by the Chinese consumer and the vast majority of our products match the flavour profile of our Australian business. Some of the key changes we have made include changing our chicken fillets to thigh meat rather than the breast meat we use in Australia due to the Chinese preference for the darker and more flavourful thigh product. We have also introduced a range of soups, corn salad and a varied range of drinks including hot and cold tea products, our range of deserts has also expanded and includes soft serve ice cream and Sundays. Having said this it is important to note however that the Chinese consumer is embracing the western food culture very quickly and these western style foods and tastes are the very reason why Chinese consumers are visiting fast food restaurants on a regular basis.
4/. Is Australia a selling point to the Chinese for food?
Our experience is that Australia has a very positive image in many countries including China and therefore the Australian origin of Oporto is seen as a benefit. With this in mind we have ensured that our store design reinforces this image in a very Oporto way and that key messages about our Australian heritage are incorporated throughout our in store communications. Australia is seen by many countries as having very high quality produce and therefore the countries reputation as an exporter of high quality food also contributes to the overall positive image of an Australian based offer. It is also important to understand that the “western style” image and fit out is equally important as the place of origin, and our restaurant fit outs therefore need to be of a very high standard and at least as impressive as any US competitor in order to meet the expectations of the discerning Chinese consumer.
5/. How do select sites in China to open the Oporto stores?
The initial launch city in China is Xiamen in the Fuzhou Province. This city was chosen due to the fact that our Chinese Partners have their head office in Xiamen City and their chicken processing plant nearby. That said Xiamen is a very modern city with a population of over 4 million, and is a young and progressive market. Our initial locations are in the city centre and are very near major competitors such as KFC and McDonalds. We have secured large restaurant spaces of over 300sqmt which have extensive street front signage and presence, and very large dining rooms, this is the model we will be pursuing as we expand into other regions and cities.
6/. What are your measurements for success?
Entering a new international market with a new brand is a long term proposition which requires significant investment along with patience and perseverance, there are no short cuts and no instant rewards and all parties must be prepared for this fact. That said, we have been delighted by the positive response to our brand and food by the Chinese consumer and can clearly see that Oporto will be a significant success in this market over the coming years. Our measure of success at this time is a combination of excellent consumer acceptance, steady sales growth and the incredible commitment and passion displayed by our partners in building and operating state of the art restaurants to the highest operational standards. With 2 stores currently open and trading and the 3rd store about to open it is clear we have a winning formula on our hands and the sky is the limit for Oporto in this massive market.
Click here to view image of Oporto in China
